India’s Electronics Exports Largely Unscathed By US Tariffs, Says ESC

New Delhi, Aug 11 (KNN) The Electronics and Computer Software Export Promotion Council (ESC) has assessed the impact of recent US Executive Orders imposing new tariff barriers on select Indian product categories.

According to the Council’s analysis, India’s electronics and mobile phone exports remain largely unaffected by the current announcements, with critical electronics items including smartphones, computers, and semiconductors continuing to receive exemptions under Executive Order 14257 and Section 232 of the US Trade Expansion Act.

India’s electronics sector has demonstrated significant growth momentum, recording a 47 per cent year-on-year increase in exports to USD 12.4 billion during Q1 FY26.

This performance has helped preserve India’s position in global electronics trade despite broader concerns about tariff escalation affecting other sectors.

The ESC emphasised that while current tariff measures spare key electronics categories, the developments highlight the necessity for India to diversify its export markets and reduce dependence on traditional destinations.

The Council commended the Department of Commerce’s Market Access Initiative (MAI) Program, citing positive results fr0m initiatives including Focus Latin America, Focus ASEAN, Focus CIS, and Focus Africa, which have encouraged Indian exporters to explore new markets.

The organisation has recommended expanding the MAI program’s scope to include additional high-potential regions, strengthening bilateral trade dialogues, and accelerating digital outreach efforts in emerging markets.

These measures are viewed as essential for building strategic resilience against future trade disruptions.

Prime Minister Narendra Modi recently called for the development of a robust domestic supply chain and electronics ecosystem aligned with the Aatmanirbhar Bharat vision.

Speaking in Varanasi, the Prime Minister urged citizens and industry to embrace indigenous products and strengthen domestic manufacturing capabilities amid global uncertainties.

He emphasised the importance of economic self-reliance, stating that consumers should consider whether Indian labour contributed to the products they purchase.

The ESC views India’s domestic market of 1.4 billion consumers and rapidly digitalising economy as providing unique opportunities for the electronics sector.

The Council believes these factors position India to develop world-class products that can serve both national demand and global markets through strengthened indigenous capabilities, component manufacturing investments, and design-led innovation initiatives.

The organisation has called on the Department of Commerce to incorporate targeted provisions in upcoming export and industrial policy frameworks.

These provisions would support domestic value chain development, innovation and intellectual property creation, export-ready ecosystems, and strategic resilience measures.

The ESC reaffirmed its commitment to supporting Indian exporters in navigating trade challenges through strategic planning and market diversification.

The Council expressed confidence that India’s electronics sector is positioned to withstand global economic pressures while expanding into new international markets.

(KNN Bureau)

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